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Who Gets the Credit? and Does It Matter? : Household Vs. Firm Lending Across Countries / Beck, Thorsten
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Beck, Thorsten
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Access to Finance.
- Bank.
- Bankruptcy and Resolution of Financial Distress.
- Banks.
- Banks and Banking Reform.
- Credit.
- Debt Markets.
- Economic Theory and Research.
- Enterprise.
- Enterprise credit.
- Finance.
- Finance and Financial Sector Development.
- Financial Intermediation.
- Financial systems.
- Household.
- Households.
- Macroeconomics and Economic Growth.
- Regulatory policies.
- Local Subjects:
- Access to Finance.
- Bank.
- Bankruptcy and Resolution of Financial Distress.
- Banks.
- Banks and Banking Reform.
- Credit.
- Debt Markets.
- Economic Theory and Research.
- Enterprise.
- Enterprise credit.
- Finance.
- Finance and Financial Sector Development.
- Financial Intermediation.
- Financial systems.
- Household.
- Households.
- Macroeconomics and Economic Growth.
- Regulatory policies.
- Physical Description:
- 1 online resource (41 pages)
- Other Title:
- Who Gets the Credit? and Does It Matter?
- Place of Publication:
- Washington, D.C., The World Bank, 2008
- System Details:
- data file
- Summary:
- While the theoretical and empirical finance literature has focused almost exclusively on enterprise credit, about half of credit extended by banks to the private sector in a sample of 45 developing and developed countries is to households. The share of household credit in total credit increases as countries grow richer and financial systems develop. Cross-country regressions, however, suggest a positive and significant impact on gross domestic product per capita growth only of enterprise but not household credit. These two findings together partly explain why previous studies have found a small or insignificant effect of finance on growth in high-income countries. In addition, countries with a lower share of manufacturing, a higher degree of urbanization, and more market-oriented financial systems have a higher share of household credit. It is thus mostly socio-economic trends that determine credit composition, while policies influencing banking market structure and regulatory policies are not robustly related to credit composition.
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